Answer to Question #319302 in Macroeconomics for Jack

Question

Discussion Question 2

Latin American and Caribbean citizens who migrate to the United States earn salaries there that are higher than what they were earning at home. Since the migrants have the same skills as when they lived in Jamaica, why are they apparently more productive in their new country?

Answer 1

Because more other units of production are involved in production function in other countries like higher capital per worker, the living standards in the United States are higher as compared to that in the Caribbean countries, the dollar value is higher the currency used in the Caribbean states and in the United States the labor compensation laws are highly considered more than in those Caribbean States. Therefore, due due to all the above conditions they end up receiving some reasonable amount of money for their work done thus motivating them to put more efforts.